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Aereo’s Failed Auction Blamed on Broadcasters in N.Y. Suit

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Aereo Inc., the online-TV service brought down by a U.S. Supreme Court copyright ruling, accused Walt Disney Co.’s ABC and other broadcasters of derailing the company’s bankruptcy auction in a bid to stifle competition, Bloomberg News reported yesterday. Aereo on Feb. 24 sold its patents, hardware and other assets piecemeal for less than $2 million -- a fraction of what it sought -- after a key bidder backed out, the company said in a lawsuit filed on Monday bankruptcy court. The potential buyer, which Aereo didn’t name, was scared off by a suggestion by Disney and other broadcasters that it may be liable for Aereo’s past copyright violations, for which the group is seeking almost $95 million in damages.